Sending money abroad

Whether you are sending money home to family, paying overseas tuition, or managing property abroad, moving money out of Canada involves several choices, fees, and hidden costs. This guide helps you navigate your options safely and affordably.

Bank Wires vs. Online Money-Transfer Services

Two main paths exist for sending money abroad from Canada. The first is a traditional bank wire through your Canadian bank. The second is an online or digital money-transfer service like Wise, Remitly, or WorldRemit. Each has different costs, speeds, and use cases.

Bank Wire Transfers

A bank wire transfer is a direct, secure electronic movement of funds from your Canadian bank to a recipient's bank account anywhere in the world. Major Canadian banks—RBC, TD, BMO, CIBC, and Scotiabank—offer international wire services.

Wire transfers typically take 1 to 5 business days to complete. The funds pass through correspondent banks (intermediary institutions), each of which may deduct its own fee. This means the recipient might receive less than you sent, and the deductions are often unknown until the transfer completes.

Outgoing international wire transfer fees from Canadian banks typically range from CAD 30 to CAD 80, depending on the bank, destination, and whether you send in-branch or online. Receiving fees are usually CAD 15 to CAD 18. However, many banks now offer International Money Transfer (IMT) products online with little or no visible fee, though you still pay through a less favourable exchange rate.

Online Money-Transfer Services

Digital remittance platforms—Wise (formerly TransferWise), Remitly, and WorldRemit—offer an alternative to bank wires. These services operate online and often have lower advertised fees and more transparent pricing than traditional banks.

Wise charges variable transfer fees starting from 0.48 percent and always uses the mid-market exchange rate with no markup. Most transfers arrive within seconds to minutes. EQ Bank (in Canada) partners with Wise, and some online banks like Simplii Financial offer international transfers with no visible fees.

Remitly pricing depends on destination and transfer method. Fees might range from free (for select currency pairs, such as CAD to USD for first-time customers) to around CAD 2 for other routes. Remitly typically adds a 0.5 to 3.0 percent markup on the exchange rate. WorldRemit offers services to many developing countries, with fees varying by payout method (bank transfers are usually cheaper than cash pickups).

These platforms generally offer multiple delivery options: direct bank deposit, mobile wallet transfer, or cash pickup at partner locations. The choice affects both the fee and delivery time.

The Real Cost: Exchange-Rate Margins, Not Just Fees

Many people focus only on the advertised transfer fee and ignore the exchange-rate markup. This is a costly mistake. The true cost of any international transfer includes two elements: the explicit fee and the exchange-rate margin (the difference between the mid-market rate and the rate your provider gives you).

The mid-market exchange rate is the true, real-time rate between two currencies on the global market—the midpoint between what banks buy and sell at. This is the fairest rate. However, most traditional banks add a 2 to 5 percent markup above this rate. Online platforms like Wise openly use the mid-market rate, while others such as Remitly add smaller markups (typically 0.5 to 3.7 percent).

For a large transfer, even a small exchange-rate difference compounds quickly. Many Canadians unknowingly lose hundreds of dollars to hidden markups by accepting the first rate they see. Before sending money, always ask your provider for the actual exchange rate they will use and compare it to the mid-market rate published by the Bank of Canada.

Timing Your Transfer

Exchange rates fluctuate throughout the day based on currency market activity. If you are not sending money urgently, watch the CAD-to-target-currency rate for a few days and send when it moves in your favour. The Bank of Canada publishes daily exchange rates that can help you spot trends. This is especially valuable for large, one-time transfers such as property purchases or tuition payments.

However, do not try to time the market perfectly; the currency market is unpredictable. If your timeline allows and you notice a favourable rate, act. If a deadline approaches, send the money rather than waiting for a potentially better rate that may never arrive.

Keeping Records and Avoiding Fraud

International money transfers can attract fraudsters and scammers. Additionally, Canada has strict reporting rules for large transfers. Protecting yourself and staying compliant means keeping good records and following simple safety steps.

Reporting Requirements for Large Transfers

If you send or receive CAD 10,000 or more (or the equivalent in foreign currency) across the Canadian border, your bank or financial institution must report this to the Canada Border Services Agency (CBSA). This is an anti-money-laundering requirement, not a tax penalty. In most cases, your bank handles the reporting automatically; you do not need to do anything extra. However, be aware that large transfers are monitored.

If you are transferring income earned abroad (such as a salary from a foreign employer, rental income from overseas property, or investment income), you must report this income to the Canada Revenue Agency (CRA) on your Canadian tax return, regardless of whether you physically bring the money to Canada. Report the amount in Canadian dollars, using the Bank of Canada exchange rate on the day the income arose. Gifts and inheritances from abroad are generally not taxable in Canada, but earned income always is.

If you own foreign property worth more than CAD 100,000 (including foreign bank accounts), you must file Form T1135 with your annual tax return. Consult the CRA website or a tax professional if you have complex foreign holdings or income.

Safety Tips and Red Flags

Fraud and scams related to money transfers are common in Canada. Protect yourself by following these steps:

• Always confirm the recipient's banking details multiple times before sending. A single typo in an account number can redirect your funds to a scammer.
• Start with a small test transfer if you are using a new recipient or service for the first time. This reduces your loss if something goes wrong.
• Keep detailed records of every transfer: date, amount, recipient details, confirmation number, and any fees charged. This documentation is essential if you need to report a scam or dispute a transaction.
• Set up alerts with your bank or transfer service to monitor your accounts for suspicious activity.
• Use only regulated money-transfer providers. In Canada, these services must follow strict anti-money-laundering and fraud-prevention rules.
• Never send money based on unsolicited offers, promises of quick returns, or requests claiming to be from government agencies (CRA, IRCC, etc.). Verify any such request directly with the official agency.
• Do not use unregulated or underground money-transfer networks. If a service does not have a clear online presence, regulatory registration, and customer support, avoid it.

If You Suspect Fraud or a Scam

Act quickly. Contact your bank or money-transfer service immediately to report the issue and provide all details of the transaction. Write down everything you remember: dates, times, messages, transaction amounts, and the names of any people or organizations involved. Your bank may be able to reverse the transaction or place a hold on your account.

Then report the scam to the Canadian Anti-Fraud Centre (CAFC) online or by phone. If the scam involved someone pretending to be from the CRA, IRCC, or another government body, report it to that agency as well. File a report with your local police department so authorities can investigate. The more people report fraud, the better law enforcement can track patterns and stop scammers.

Choosing the Right Method: A Quick Checklist

• For large formal transfers, business payments, or situations where the recipient's bank only accepts SWIFT wires: Use a bank wire.
• For regular or frequent personal transfers with emphasis on cost: Use an online service like Wise, which offers mid-market rates with no markup.
• For transfers to developing countries with multiple delivery options (cash pickup, mobile wallet): Consider Remitly or WorldRemit, but compare total cost including exchange-rate margins.
• For urgent transfers: Use an online service; most deliver within minutes to hours, whereas bank wires take 1 to 5 business days.
• For very large amounts: Contact your bank about volume discounts or ask an online service if they offer reduced fees for larger transfers.

Sending money abroad does not have to be expensive or confusing. By comparing the total cost—not just the advertised fee—and using a regulated, transparent provider, you can save hundreds or thousands of dollars over time. Keep records, watch for scams, and stay compliant with Canadian reporting rules. Your money will reach its destination safely and efficiently.